Gone are the times when you would need to sit in a bank, nervously asking the bank manager for a loan, spending hours trawling through paper work. Now, with the internet in all its glory, we are able to access online instant loans with a click of a few buttons.
What’s great about this is that we can get a loan much more quickly, with money entering our bank accounts within just a few days in some cases. It also means you don’t need to speak to anyone face to face, and you can make the application from the comfort of your own home.
There are, obviously, some criticisms to this. Some are worried this makes loans too accessible, with people able to get hold of money far too quickly and readily and without enough forethought. However, it is important to point out that online lenders don’t give out money willy nilly– relevant checks are made with online loan applications. For instance, your credit file will be checked. This gives lenders an idea on what kind of borrower you are, whether you have racked up any debt in the past, and if you could be trusted with a new lot of money in the future. Balance.com says “Your credit report contains detailed information about your credit cards and loans. For credit cards, your balance, credit limit, account type, account status, and payment history are all included on your credit report. Loan balances, original loan amount, and payment history appear on your credit report.” This information is considered carefully by lenders before agreeing to your loan.
Some may also criticise online loan companies for not being transparent or clear enough. When you sit with a bank manager in the high street, you can be talked through the loan, the repayments, and the time scales for repayment, in an easy-to-comprehend manner. However, is this possible with online loans too?
Well, yes – it can be. If you use a reputable loan company, you are likely to be able to access their website which may have repayment calculators on them, as well as a FAQ section, and even an online chat section which makes things easy to understand. For instance, with Wonga, you can check out your online loan repayments easily on their website, the core of their advertising revolves around transparency of what you owe for the loan with no hidden fees They have incorporated a ‘slider’ calculator, which allows the browser to see how much they could borrow and what the impact would be in terms of fees and repayments. Their site also includes a ‘Money Academy’ section, which assists borrowers in being financially savvy with their money. It touches on how to save, how to invest, and how to get out of debt. The site is clearly loaded with information which a borrower can digest, and therefore meeting someone face to face in a bank is no longer as necessary.
If you are unsure about whether to get an online loan or you have a question to ask, you can also talk to many of these loan companies directly. If a company doesn’t have a phone number to call, be wary! The truth is, online loan companies offer everything a normal high street bank does in its traditional form, if not more.